Core Viewpoint - The recent recovery in equity markets has led to increased interest in "fixed income +" products, particularly low-volatility variants that offer stable returns with lower drawdowns [1][2] Group 1: Product Overview - The Zhongtai Shuangxin 6-Month Bond Fund (Class A: 023214, Class C: 023215) was launched on May 14, focusing on high-quality bonds as underlying assets, with a maximum of 20% allocated to equity assets [1] - The fund aims to achieve long-term returns exceeding the average fixed income yield while controlling drawdowns through hedging tools [1][3] - A 6-month holding period is set to stabilize fund size and reduce the impact of daily redemptions, allowing for a more strategic long-term investment approach [1] Group 2: Management Team - Fund managers Cheng Bing and Shang Yuanbo have over ten years of experience in securities research and investment, previously managing the Zhongtai Shuangli Bond Fund, which has shown strong performance [2][4] - The Zhongtai Shuangli Bond Fund's Class A net value growth rate reached 9.97% as of March 31, 2025, outperforming its benchmark by 4.04% [2] Group 3: Risk Management and Strategy - The focus of low-volatility "fixed income +" products is on risk-return characteristics rather than just yield, aiming for drawdown control similar to pure bond funds while achieving slightly better long-term returns [3] - Over 80% of the fund's capital will be invested in high-grade credit bonds and interest rate bonds, with equity investments limited to 20% in well-governed industry leaders [3] Group 4: Performance Metrics - The Zhongtai Shuangli Bond Fund has demonstrated superior drawdown management, with a maximum drawdown of only 0.66%, significantly better than the mixed bond index (4.25%) and pure bond index (1.31%) [2][4]

Core Viewpoint - The article discusses the characteristics, risk-return profile, and management strategies of a mixed secondary bond fund, highlighting its potential as a stable investment option in a low-interest-rate environment [2][3][7]. Group 1: Fund Types and Characteristics - The fund is categorized as a mixed secondary bond fund, investing at least 80% of its assets in bonds and up to 20% in equity and convertible bonds, often referred to as "fixed income plus" products [2]. - The fund's expected return and risk level are lower than equity funds but higher than pure bond and money market funds, aiming to align with the medium to long-term bond index [3]. Group 2: Historical Performance - Over the past 20 years, the secondary bond fund index has increased by 372.10%, significantly outperforming the China Bond Index, which rose by 146.90% during the same period [3]. - In the last ten years, the secondary bond fund index had positive returns in seven years, with two years benefiting from the A-share market, achieving annual gains exceeding 10% [5]. Group 3: Current Market Conditions - With the recent decline in bank deposit rates and a drop in the 10-year government bond yield to around 1.7%, traditional cash management products and pure bond funds are increasingly unable to meet investors' demand for stable returns [7]. - The fund's "fixed income plus" strategy is positioned as a solution for conservative investors seeking to enhance yield [7]. Group 4: Investment Strategy - The fund employs a "fixed income plus" strategy, using bonds as a stable base and equities for potential higher returns, while also utilizing hedging tools to reduce portfolio volatility [8]. - The investment approach focuses on selecting high-quality bonds with a minimum credit rating of AA+ and emphasizes value investing in equities, targeting industry leaders and mature companies [8]. Group 5: Risk Management - The fund aims for low volatility and low drawdown by determining the stock-bond ratio through macro analysis and selecting foundational bonds and equity assets [9]. - Strict stop-loss operations and a focus on hedging are employed to control risks effectively [9]. Group 6: Fund Management Team - The fund will be managed by two experienced fund managers, Cheng Bing and Shang Yuanbo, who have extensive backgrounds in securities investment and management [10][11]. - The fund managers have previously managed similar products, achieving notable performance metrics, including a net value growth rate of 9.97% since inception [11]. Group 7: Market Opportunities - The fund managers recognize the current high volatility in the bond market due to external uncertainties but see potential opportunities in the equity market supported by favorable policies and low-interest rates [12][13]. - They plan to adjust leverage, portfolio duration, and asset distribution in response to market conditions, focusing on undervalued large-cap stocks [13]. Group 8: Fund Fees and Structure - The fund has a minimum holding period of six months, after which investors can redeem without incurring redemption fees, with various fee structures based on investment amounts [14][15]. Group 9: Management Company Overview - Zhongtai Securities Asset Management Co., Ltd. was established in 2014 and has grown to manage assets totaling 105.12 billion yuan as of December 31, 2024 [16]. - The company ranks highly among peers in both active stock and bond investment management over the past five years [16].